Change in state providing bargains at sheriff sales

SANDUSKY — If you want to buy a house and you are looking for a bargain, sheriff sales in Erie County and other counties are starting to provide one.A state law passed last year removes the minimum bid for houses that have failed to sell after a bank foreclosure, allowing bids for as little as $1. (But you do have to pay back taxes and court costs before you move into your ultra cheap dream home.)The no-minimum provision of Senate Bill 390 is only now starting to take effect. The Akron Beacon Journal reported on Jan. 1 that a house in Summit County had sold for $1 on Dec. 16.The first potential bargain in Erie County becomes available at the sheriff's sale scheduled for 10 a.m. Tuesday, Jan. 10, at the Erie County Courthouse.A house at 49 Liberty Street in Milan, with an appraised value of $43,500 will up for sale Tuesday with no minimum bid. But buyers will have to put up a deposit of $5,000 to cover costs and satisfy any taxes and liens, said Deputy Joe Pfeiffer, who handles sheriff sales and other civil matters for the sheriff.The first time a foreclosed house goes for sale at the behest of the bank, there has to be a minimum bid of two-thirds of the appraised value. That was the rule under the old law, and that's still in place, Pfeiffer said.What's new is that if the house fails to sell, the bank doesn't have to start over. The house is offered for sale a second time, and there's no minimum bid.The apparent intent is to deal with abandoned properties, the deputy said."They are trying to fast track some of these blighted properties that sit for years," he said.Depending on what happens with the attempted sale of other houses Tuesday, more no-minimum-bid houses may be coming up for sale soon, Pfeiffer said.The new no-minimum bid provision only applies in cases in which the bank is the plaintiff. Buyers have to put down $5,000 to cover any possible expenses, and the sheriff's sale page maintained at the sheriff's website has a new disclaimer, "The purchaser shall be responsible for those costs, allowances and taxes that the proceeds of the sale are insufficient to cover," that was added as a result of the new law.When the Erie County treasurer, Pam Ferrell, has given up other ways to collect back taxes and has resorted to filing a tax foreclosure lawsuit, the minimum bid rule still applies, Pfeiffer said.Sheriff sales are court ordered sales held every month, with properties posted on the sheriff's website so that interested potential buyers can see what's available. It's an auction format, although there's no fast talking. Capt. Steve Westcott calls out the sales while Pfeiffer does the paperwork.Sheriffs are asked to take on the chore because they have no stake in what's going on, Pfeiffer explained."We're a disinterested party," he said.More stories from the Erie County Sheriff's Office49 Liberty Street in Milan.